Today's up-and-coming supply chain professionals are no-nonsense, results-oriented types who are eager to make a splash. But recruiters take note: It's going to take more than money to snag one.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
If the recruitment process for supply chain management professionals were conducted like the National Football League draft, then William Smith might be considered a first-round pick.
Smith, 22, will graduate in December from the University of Tennessee at Knoxville with two degrees. One is in logistics with a concentration in international business. The other is in Spanish.
In theory, Smith sits in the young logistician's version of the "sweet spot." Not only does he enter a field growing in corporate and geographic relevance, but he also possesses the bilingual skills that will enable him to more easily assimilate into foreign markets and cultures than his unilingual peers.
So what will it take to hire Smith, who is just now starting to chart his career path and has yet to receive any job offers? More to the point, what will it take to retain him?
Recruiters may be interested to know that in Smith's case, it's not about the money. Rather, it's about having the freedom and the autonomy to change the game.
"I would like to have the authority to come up with unique solutions to problems and challenges I'm presented with," he says. "I'd like to know that my perspectives and contribution are making a difference for my company and its customers."
Asked where he puts financial compensation on the priority list, Smith replies, "This is my career. I want to have more fulfillment than just financial well-being."
It's not about the money
Meet the "newbies" of the supply chain, a paradox in progress. They possess the tech savvy and global orientation you'd expect of today's young professionals. They are no-nonsense, results-oriented types who will demand the flexibility—largely enabled by mobile office technology—to do it their way.
At the same time, they seek jobs that offer the promise of stability and continuity, a trait that runs counter to the conventional wisdom about the newest generation of workers. Many take for granted that they will be able to advance within their chosen organization. And they expect to make an impact that goes beyond their bank accounts.
Money is just a small slice of the pie, according to those interviewed for this story. "At this age, you really don't need to make that much of it," says Dian Cui, a 2009 industrial engineering graduate of Dalhousie University in Halifax, Nova Scotia, and today a supply chain analyst for the Nova Scotia Liquor Corp. in Halifax.
Kevin Remillard, a 2010 Georgia Southern University graduate recently hired by third-party logistics giant C.H. Robinson Worldwide Inc., says that "money wasn't my main concern" in accepting Robinson's offer over three others. The key factor, he says, was that Robinson was a "company I could see being with one, five, or 10 years out."
Ironically, two Robinson executives say that while they tout the company's stability and longevity—Robinson was founded in 1905—in interviews and at job fairs, the message seems to be lost on many young people. "It kind of just flies by them. I don't think it's looked at too closely," says Eric Mesenburg, the company's director of recruiting.
Laura Gillund, Robinson's vice president of human resources, says she hears more discussion about workforce stability from the parents of college graduates than from the graduates themselves. The subject also comes up more frequently with job seekers in their late 20s and early 30s with a decade of experience under their belts, she adds.
Cui believes job seekers in their early 20s are less likely to be concerned about their long-term prospects with an employer than their older counterparts are. He says that many companies with relatively small supply chain operations expect newly minted hires to stay two or three years, gain experience while delivering productivity, and then move on to a larger organization. Cui says he's happy with his employer and his current position but adds he would eventually like to return to his native China and apply his skills there.
Charlie Crawford, who is enrolled in the graduate program in industrial engineering at Virginia Tech, says the craving for stability may be more a reflection of uncertain economic conditions than any altruistic urges. "It's a sign of the times," he says.
For his part, Crawford says he would prefer a stable career path, but with his own imprimatur. "Many companies tout rotational programs, but that doesn't interest me," he says. "I want to know what the company has for me now, and what the options are for me one or two years from now. I want to know what I am going to be doing."
Crawford, who did stints at two companies during his college years and was part of a team that won a distribution center design award in 2008 from the Material Handling Industry of America (MHIA), says he will not join a company that doesn't have defined career paths for its employees. "If a company doesn't have a vision for where this person is going, then [the individual] will probably not get there," he says.
Room at the top?
In a tough job market, employers can be selective. For example, Starbucks Coffee Co., which has launched a global effort to build a high-level personnel pipeline to support its supply chain for the next 15 to 20 years, will only consider the top 10 percent of the graduating class of the schools it plans to work with, according to Shawn Simmons, Starbucks' vice president, partner resources for supply chain operations.
The ideal candidates—Starbucks plans to hire and groom eight to 12 people per year for the foreseeable future—will have exposure to Fortune 500 organizations either through prior work experience or internships, must have demonstrated leadership in previous roles, and be open to accepting international as well as domestic positions, Simmons says.
Whether it be at Starbucks or other companies its size, today's college graduates or graduates-in-waiting may have to bide their time before assuming high-ranking leadership roles. A 2009 survey by Ohio State University found that the average age range for directors and vice presidents was 45 to 49. Although that was down a bit from the 50- to 55-year range reported in prior studies, there were more over-55 executives holding senior management titles than in years past, the survey found.
For those worried about a lack of young blood to replace today's upper echelon, Crawford has some encouraging news. In addition to the students who are pursuing formal studies in logistics, he says, there will be plenty of others who are open to careers in the profession. Many of his peers have developed an interest in logistics and supply chain management not because of an affinity for the discipline itself, but for its effect on so-called vertical fields like health care and automotive.
"The supply chain is expanding into many different areas of operation," he says. "We will see people taking standard concepts and applying them in different ways. Someone who is interested in health care but not in supply chain management now finds [the supply chain] stimulating because of the impact it has on that person's chosen field."
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."